Scammer sentenced

By Gary V. Murray TELEGRAM & GAZETTE STAFF

Monday

Jun 27, 2011 at 1:00 PMJun 27, 2011 at 10:20 PM

So convincing was Michael P. Hlady's story that Venerini Academy undertook a costly renovation project based solely on his promise that the school would be receiving millions in donations from a local philanthropist.

The smooth-talking professional fundraiser from Rhode Island also persuaded school officials that he should be compensated handsomely for his efforts to secure the money and was, in fact, paid more than $360,000.

It turned out it was all part of what a prosecutor described in court today as “an elaborate, fraudulent scheme.”

Mr. Hlady, 39, was sentenced to 2 years to 2 years and a day in state prison and ordered to pay $363,620 in restitution to Venerini Academy after pleading guilty in Worcester Superior Court to related larceny and identity fraud charges.

Prosecutors said he used the money on travel, gambling and adult entertainment.

Assistant Attorney General Lee Hettinger said Mr. Hlady, or others acting on his behalf, posed as local philanthropist Arthur Remillard Jr. and promised a donation of up to $85 million to the school on the condition that Mr. Hlady be issued checks for his fund-raising efforts as directed.

Based on the anticipated donation, the school went ahead with about $3 million in badly-needed renovations. When the expected funds did not materialize, contractors hired to do the renovation work sued. The Vererini nuns used their retirement money to pay a mediated settlement and resolve the lawsuits.

According to Mr. Hettinger, Mr. Remillard, the founder of Commerce Group Inc., a Webster insurance company, said he never authorized Mr. Hlady to his use his name or made any pledge of money from the Remillard Family Foundation to Venerini.

Mr. Hettinger, who recommended a sentence of 4 to 5 years with an order of restitution, said Mr. Hlady went so far as to create “eight separate identities” to carry out his fraudulent scheme, including that of a federal judge.

Sister Pauline Badagaliacca, the school's treasurer at the time and Helen Taddeo, the associate treasurer, were the Venerini representatives who dealt with Mr. Hlady and agreed to hire him as the school's exclusive fundraising agent, according to Mr. Hettinger.

Ms. Taddeo, who has since retired and Sister Pauline, who has resigned, were both in court today. They declined to comment after the proceedings.

The prosecutor accused Mr. Hlady of taking advantage “of two elderly women who had a very trusting nature” and said he ingratiated himself with them by inviting the women to visit his family in Rhode Island and vacation with them at his time-share in Cancun.

At one point when the Venerini officials questioned the delay in funding, they were told the money was tied up in the federal government because Mr. Remillard was paying millions to bail out the nation's banks, according to Mr. Hettinger.

Venerini, a private school on Edward Street, has about 350 students in prekindergarten through Grade 8.

In an impact statement read in court, Ms. Taddeo accused Mr. Hlady of betraying the trust she and her colleague placed in him.

“Michael Hlady has damaged my life emotionally and financially,” she said.

Mr. Hlady's lawyer, Tom G. Vukmirovits, recommended that his client be sentenced to an unspecified jail term with probation and an order of restitution. Prior to his arrest last year, Mr. Hlady was experiencing “personal issues” that fueled his need for money, according to the defense lawyer. He did not elaborate.

Mr. Hlady apologized to his victims, saying his relationship with them “was not part of some scheme.

“There is no excuse for my actions,” he said in open court. “I wish there was a way that I could have made all this go away before it started.”

As conditions of his probation for 10 years, Mr. Hlady was ordered by Judge James R. Lemire to pay full restitution; to have no contact with the school or any of its representatives; to undergo a mental health evaluation and any related treatment, including Gamblers' Anonymous, deemed appropriate by the court and to refrain from any fundraising activities.

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